The Commercial Cassation Court of the Supreme Court has ruled on the recognition of monetary claims of a creditor established and registered in accordance with the laws of the Russian Federation

As part of the bankruptcy proceedings of a limited liability company (LLC), an application was received from the LLC, a legal entity registered in Moscow (Russian Federation), with monetary claims against the debtor.

The local commercial court, with which the court of appeal agreed, dismissed the LLC's application. In this case, the courts were guided by the fact that, taking into account the provisions of Article 17 of the Constitution of Ukraine, paragraph 1, subparagraph 1 of Resolution of the Cabinet of Ministers of Ukraine (CMU) No. 187 "On Ensuring Protection of National Interests in Future Claims of the State of Ukraine in Connection with the Military Aggression of the Russian Federation", the claims of LLC, a legal entity established and registered in accordance with the laws of the Russian Federation, cannot be satisfied and recognised due to the existence of a moratorium (ban) on their satisfaction.

The Commercial Cassation Court of the Supreme Court overturned these court decisions and issued a new one, dismissing the LLC's application for recognition of monetary claims against the debtor.

The Supreme Court found that the moratorium prohibits a specific list of actions between the parties to legal relations, establishes a certain legal regime for these legal relations and affects the flow of monetary and other obligations. Since the introduction of the moratorium, the subjective right of creditors (claimants), listed in CMU Resolution No. 187, has been subject to restrictions on their ability to exercise their right to claim against the obligated party, including by seeking judicial protection.

The moratorium (ban) on the fulfilment of monetary and other obligations, the creditors (claimants) of which are legal entities established and registered in accordance with the legislation of the Russian Federation, as established in subparagraph 1 of paragraph 1 of CMU Resolution No. 187, in conjunction with the provisions of the Code of Ukraine on Bankruptcy Procedures regarding the rules and consequences of filing and recognising a creditor's monetary claims against a debtor in a bankruptcy case, makes it impossible to recognise under the rules of the Code of Ukraine on Bankruptcy Procedures the monetary claims of those creditors who are persons specified in CMU Resolution No. 187, including legal entities established and registered in accordance with the laws of the Russian Federation, such as the LLC.

Resolution of the Commercial Cassation Court of the Supreme Court of May 30, 2023 in case No. 925/1248/21 - https://reyestr.court.gov.ua/Review/111709194.

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